Igo Limited · ASX:IGO
Igo — Independence Group NL — Diggers & Dealers 2011
53 slides from Igo's conference presentation, Jul 29, 2011
Slide 1: Growing a Great Australian Mining Company
For personal use only INDEPENDENCE GROUP GROWING A GREAT AUSTRALIAN MINING COMPANY DIGGERS & DEALERS 2011 Chris Bonwick – Managing Director 1
Slide 2: Disclaimer
Disclaimer For personal use only Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other tha
Slide 3: Independence History and Share Price
Independence History and Share Price For personal use only Five ore bodies discovered to date Monthly Average Share Price to 28.07.11 3
Slide 4: Independence Overview - Corporate
Independence Overview - Corporate For personal use only Substantial shareholders: JCP Capital 9.5% (as at 28.07.11) NAB 5.0% Aus Inst : 50.1%, OS Inst : 12% 72 Institutions in top 100 Capital Structure: ASX 200 Code: IGO Shares on Issue at 28 July 2011: 202.9M Market Capitalisation: (28/07/11): A$1.
Slide 5: Project Portfolio
Independence Group NL Project Portfolio For personal use only Project Status Estimated Estimated Current Estimated Mine Life Production Resources Annual Start Date Production Long Producing 5+ years Operating 91,500 Ni T 8,800 – 9,200 Ni T (Ni) (2011/12) Jaguar / Bentley Producing 7+ years Operating
Slide 6: Mines, Development and Advanced Exploration Projects
Independence Group NL – Mines, Development and Advanced Exploration Projects For personal use only 6
Slide 7: Tropicana JV (IGO 30%)
Tropicana JV (IGO 30%) Gold Production 2013 For personal use only DEVELOPMENT APPROVED NOVEMBER 2010 A New Australian Gold Province AngloGold Ashanti – 70% (Manager) Independence Group NL – 30% Tropicana JV 1000kms “New Gold Province under sand” 7
Slide 8: Tropicana JV Significant Discoveries To Date
Tropicana JV (IGO 30%) Significant Discoveries To Date For personal use only Numerous gold anomalies and potential for other gold discoveries 8
Slide 9: Tropicana JV June 2011 Reserve and Mining Inventory
Tropicana JV June 2011 Reserve and Mining Inventory For personal use only 100% PROJECT June 2011 Open Pit Reserve: 56Mt @ 2.2g/t Au – 3.9Moz (A$1,210/oz) June 2011 Mining Inventory: (Reserve + Marginal Ore + Inferred Resource) - 64Mt @ 2.0g/t Au – 4.1Moz (A$1,210/oz) 9
Slide 10: Tropicana JV Bankable Feasibility Study & June 2011 Reserve Update
Tropicana JV – Bankable Feasibility Study & June 2011 Reserve Update (100% Project) For personal use only BFS Open Pit Reserves: Tropicana, Havana, Havana South 48Mt at 2.2 g/t Au – 3.4Moz* (*$US880oz Au, A$1,100 oz Au, AUD : USD 0:80, A$85/bbl oil, 0.7 g/t Au fresh ore cut off) Milling Rate: 5.8 –
Slide 11: Tropicana JV BFS Outcome
Tropicana JV BFS Outcome (100% Project) For personal use only Plant & Equipment A$590-A$620M Real Capital: Working Capital A$100-A$120M Real A$690-A$740M Payback: 2.2 years (A$1,300/oz Au, US$85/bbl oil, AUD:USD 1:00) Road Construction: Commenced June 2011 Quarter Anticipated First Gold: December 20
Slide 12: Havana Deeps
Tropicana JV (AngloGold Ashanti 70% / IGO 30%) Havana Deeps For personal use only Havana Deeps is not included in current Reserves Tropicana gold system still growing along-strike and down-dip. 12
Slide 13: Havana Deeps Intercepts
Tropicana JV Havana Deeps Intercepts For personal use only Havana Deeps is not included in BFS Tropicana gold system still growing along-strike and down-dip. 13
Slide 14: Havana Deeps Cross-section
Tropicana JV Havana Deeps Cross-section For personal use only Tropicana JV Havana Deeps Step Out Hole 14
Slide 15: Tropicana Fly Through
Tropicana Fly Through For personal use only 15
Slide 16: Long Nickel Mine (IGO 100%)
Long Nickel Mine (IGO – 100%) For personal use only 2002 Purchase price = A$15M Update Moran Discovery now in production @ 4.6% Ni. Continued exploration and production development. Recent exploration success at Long North and Moran. 1979-1999 WMC Production: 203,184t Ni 2002-Jun Qtr 2011 IGO
Slide 17: Long Nickel Mine (IGO 100%)
Long Nickel Mine (IGO 100%) For personal use only Moran, McLeay and Long nickel ore bodies yet to be closed off HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to Jun 11 = 73,862 Ni t • June 2010 Resource = 91,500 Ni t • June 2010 Reserves = 53,400 Ni t GOALS • Sustainable 9,000t Ni pa
Slide 18: Quarterly Cash Costs and Revenue
Quarterly Cash Costs and Revenue For personal use only High operating margins and consistent low cash Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni 18
Slide 19: Long Production Forecast and Hedging
Long Production Forecast and Hedging For personal use only History of exceeding production guidance 2010/11 2011 Guidance Actual • Production 8,800 - 9,200 Ni t 9,753 Ni t • Grade 4.1% Ni 4.3% Ni • Cash Costs (payable) + royalty A$4.40 - 4.60/lb Ni A$4.48/lb Ni 2011/12 Guidance • Production 8,800 -
Slide 20: Mine Geophysics - TEM Equipment
Mine Geophysics - TEM Equipment For personal use only Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targeting, redu
Slide 21: Long Mine Nickel Deposits and Targets
Long Mine Nickel Deposits and Targets Longitudinal Projection For personal use only Largest Reserve since IGO reopened the mine (mine life extended to at least 2016) 21
Slide 22: Long Mine Fly Through
Long Mine Fly Through For personal use only 22
Slide 23: Jaguar Project (IGO 100%)
Jaguar Project (IGO 100%) VMS Corridor Walk-up Geophysical and Drilling Targets For personal use only Aeromagnetic Image Jaguar / Bentley September 2010 Reserves: 3.23M t @ 1.8% Cu, 7.9% Zn, 99g/t Ag, 0.4g/t Au (58,200t Cu, 255,500t Zn, 10.3M oz Ag, 4.2K oz Au) Reference: JML ASX release dated 9 Sep
Slide 24: Jaguar Operation Production
Jaguar Operation Production For personal use only 2010/11 2011 Guidance Actual • Production 8,100 - 8,550 Cu t* 8,468 Cu t 13,500 - 14,250 Zn t* 14,642 Zn t • Grade 2.8% Cu 5.8% Zn 80g/t Ag • Zn C1 Cash Costs (after Cu-Ag credits) A$-0.31/lb Zn 2011/12 Guidance • Production 8,500 - 9,500 Cu t 15,500
Slide 25: Jaguar Project – Jaguar Deposit
Jaguar Project – Jaguar Deposit (IGO 100%) For personal use only September 2010 Reserves: 0.78M t @ 2.9% Cu, 5.6% Zn, 81g/t Ag (22,700t Cu, 43,900t Zn, 2.0M oz Ag) Open down-plunge 25
Slide 26: Jaguar Project - Bentley Deposit
Jaguar Project - Bentley Deposit (IGO 100%) For personal use only November 2010 Resource: 3.0M t @ 2.0% Cu, 9.8% Zn, 0.6% Pb, 139g/t Ag, 0.7g/t Au (60,900t Cu, 298,500t Zn, 18,300t Pb, 13.6M oz Ag, 68.5K oz Au) Future Development Open down-plunge 26
Slide 27: Jaguar/Bentley Potential
Jaguar/ Bentley Potential (IGO 100%) For personal use only Volcanic Massive Sulphide (VMS) Discovery History & Mineralisation Scale Bentley Resource Golden Grove Gossan Hill discovery history Outline ? ? ? 27
Slide 28: Jaguar Project VMS Corridor Targets
Jaguar Project (IGO 100%) VMS Corridor Walk-up Geophysical and Drilling Targets For personal use only Aeromagnetic Image Under explored 50km long prospective Cu-Zn-Ag VMS corridor. Prospectivity around existing Mines. Other strong Cu-Zn-Ag alteration anomalies. Gold and Nickel potential. 28
Slide 29: Stockman Project Mines and Prospects
Stockman Project (IGO 100%) Mines and Prospects For personal use only Wilga and Currawong Cu-Zn-Ag Deposits discovered by WMC In 1978/9. Total Indicated + Inferred Resources: 12.5M t @ 2.1% Cu, 4.4% Zn, 38g/t Ag, (262,500t Cu, 550,000t Zn, 15.3M oz Ag). Both Currawong and Wilga VMS Deposits open dow
Slide 30: Stockman Project Currawong Deposit
Stockman Project Currawong Deposit For personal use only July 2010 Resource: 9.17M t @ 2.0% Cu, 4.2% Zn, 0.8% Pb, 41g/t Ag, 1.1g/t Au (183,500t Cu, 385,300t Zn, 73,400t Pb, 1.25M oz Ag, 0.32M oz Au) Open down-plunge 30
Slide 31: Stockman Project Wilga Deposit
Stockman Project Wilga Deposit For personal use only July 2010 Resource: 3.33M t @ 2.4% Cu, 4.9% Zn, 0.4% Pb, 30g/t Ag (80,000t Cu, 163,000t Zn, 13,300t Pb, 3.2M oz Ag) Open down-plunge 31
Slide 32: Stockman 2009 Scoping Study Outcome
Stockman 2009 Scoping Study Outcome For personal use only Sep 2009 Resources: Cu-rich zones 3.66Mt @ 3.9% Cu, 4.4% Zn, 40g/t Ag, 0.9g/t Au Zn-rich zones 3.7Mt @ 1.1% Cu, 7.2% Zn, 44g/t Ag, 1.1g/t Au Stringer zone 1.15Mt @ 2.1 Cu, 1.2% Zn, 17g/t Ag, 0.4g/t Au Project Life: 7-8 years @ 900,000 t pa Ca
Slide 33: Stockman Project Mines and Prospects
Stockman Project Mines and Prospects For personal use only Aeromagnetic Image Total Indicated + Inferred Resources: 12.5M t @ 2.1% Cu, 4.4% Zn, 38g/t Ag, (262,500t Cu, 550,000t Zn, 15.3M oz Ag) Both Currawong and Wilga VMS Deposits open down-plunge. 33
Slide 34: Duketon JV – Rosie Prospect
Duketon JV – Rosie Prospect Massive Nickel Sulphides (IGO earning 70%) For personal use only Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.1% Ni, 1.1% Cu, 0.2% Co, 7.1g/t PGE’s (2.2g/t Pt, 1.7g/t Pd, 1.8g/t Ru & 0.8g/t Rh) 34
Slide 35: Orrbacken Nickel Project - Sweden
Orrbacken Nickel Project - Sweden (JV: IGO earning up to 73%) For personal use only Numerous concealed TEM anomalies NiS rich gabbro boulder 35
Slide 36: Karlawinda Gold Project
Karlawinda Gold Project Bibra Prospect (IGO 100%) For personal use only Maiden Resource 220,000 oz Au 36
Slide 37: Project Generation: De Beers Database
Project Generation De Beers Database (IGO 100%) For personal use only No buy-back or royalties on future mineral discoveries Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected. 2,278 samples reporting visible gold. 2,025 geophysical survey
Slide 38: De Beers Database Storage Warehouse
De Beers Database Storage Warehouse For personal use only Preparing geochemical samples for analysis 38
Slide 39: Example: Potential To Find New Mines
Example: Potential To Find New Mines De Beers Database (IGO 100%) For personal use only IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA) 39
Slide 40: Birrindudu Tin Project
Birrindudu Tin Project Northern Territory (IGO 100%) For personal use only New Australian tin discovery Cassiterite rich heavy mineral concentrate 40
Slide 41: Asset Pipeline and Organic Growth Profile
Asset Pipeline and Organic Growth Profile For personal use only Combination of low cost cash flows from current operating mines with significant long-life development projects and highly prospective exploration Highly complimentary management and technical capabilities, with proven successful track
Slide 42: Growing a Great Australian Mining Company
Independence Group NL Growing a Great Australian Mining Company For personal use only ASX listed base metals companies >A$250m – Market capitalisation (A$m) 6,000 4,589 2,500 Market capitalisation (A$m) 2,530 2,000 1,500 1,250 1,000 1,189 1,091 1,055 959 500 645 492 395 387 190 0 Mirabela Nickel Pan
Slide 43: Independence Contact Details
Independence Contact Details For personal use only Perth Office Managing Director – Chris Bonwick Ground Floor, Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, South Perth, Western Australia 6951 Telephone: +61 8 9479 1777 Facsimile: +61 8 9479 1877 Email: contact@i
Slide 44: Appendix: Resource Statements
Independence Group NL For personal use only APPENDIX RESOURCE STATEMENTS 44
Slide 45: Long Nickel Mine June 2010 Resources and Reserves
Long Nickel Mine (IGO 100%) June 2010 Resources and Reserves For personal use only RESOURCES MINING RESERVE Undiluted at 1% Ni Cut-off 1, 2 as at 30 June 2010 as at 30 June 2010 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven 15,000 2.8 400 Indicated 215,000 4.
Slide 46: Tropicana JV June 2011 Interim Resources and Reserves
Tropicana JV (AngloGold Ashanti 70% / IGO 30%) June 2011 Interim Resources and Reserves For personal use only June 2011 June 2011 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 28.4 2.1 1.97 Proved 25.8
Slide 47: Karlawinda Gold Project – Bibra Deposit
Karlawinda Gold Project – Bibra Deposit Maiden Resource March 2011 For personal use only Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 1.9 1.2 73,300 Upper Saprolite 0.8 1.1 28,300 Lower Saprolite 1.6 1.1 56,600 Sub-total Oxide Inferred 4.3 1.1 158,200 Transition Inferred
Slide 48: Bentley Mineral Resource - November 2010
Jaguar Project Bentley Mineral Resource - November 2010 For personal use only Cu Zn Pb Au Ag Mineralisation Type Classification Tonnes % % % g/t g/t Massive Sulphide Indicated 1,342,000 1.9 15.4 1.0 0.8 184 Stringer Sulphide Indicated 961,600 1.7 2.3 0.1 0.3 34 Total Indicated 2,303,600 1.8 9.9 0.6
Slide 49: Jaguar Project Reserve & Additional Resource
Jaguar Project Reserve & Additional Resource - 1 September 2010 For personal use only Classification Tonnes Cu % Zn % Ag g/t Au g/t Bentley Underground Reserve (Sept 2010) – Stage 1 & 2 Reserve Probable (Stringer) 560,000 1.46 1.72 23 0.24 Probable (Massive) 1,890,000 1.46 10.7 130 0.62 Total Probab
Slide 50: Jaguar Project Resource Summary - July 2010
Jaguar Project Resource Summary - 1 July 2010 For personal use only Cu Zn Pb Ag Au Classification Tonnes % % % g/t g/t Measured 511,000 4.7 10.4 0.7 141 - Indicated 3,555,000 1.9 7.8 - 104 - Inferred 614,000 1.4 0.8 - 26 - Sub Total Measured & Indicated 4,066,000 2.2 8.2 - 109 - Jaguar Project Summa
Slide 51: Teutonic Bore Resource - August 2009
Teutonic Bore Resource - August 2009 For personal use only Teutonic Bore Resource (August 2009) Massive Indicated (transitional) 20,000 4.3 11.7 1.1 200 - Massive Indicated (fresh) 132,000 1.7 16.7 1.5 223 - Sub Total Massive Indicated 152,000 2.1 16.0 1.4 220 - Stringer Indicated 719,000 1.5 0.7 -
Slide 52: Stockman Resource Estimate - September 2009
Stockman Resource Estimate - September 2009 For personal use only Stockman Classification Tonnes Cu % Zn % Pb % Ag g/t Au g/t Currawong Indicated 8,552,000 2.0 4.2 0.8 41 1.1 Currawong Inferred 621,000 1.9 3.9 0.8 37 1.2 Total Indicated + Inferred 9,173,000 2.0 4.2 0.8 41 1.1 Wilga Indicated 2,831,0
Slide 53: Competent Person Statements
Competent Person Statements For personal use only Note: The information in this presentation that relates to the Bibra Prospect Mineral Resources is based on information compiled by Michelle Wild, who is a Member of The Australasian Institute of Mining and Metallurgy. Michelle Wild is employed by Wi